Ernst Russ

DB: HXCK

€20.4mmarket cap

€0.63last close

Ernst Russ is a listed asset and investment manager and asset investor, with AUM of c €2.5bn, focused on shipping and real estate. Currently, the Ernst Russ Group manages a fleet of around 77 container, tanker and bulker ships, as well as a total of 40 real estate properties at 28 sites. The company has offices in Hamburg, Cologne and London.

Investment summary

In FY19 Ernst Russ (ERAG) strategically repositioned itself to focus on its investor and asset manager activities in shipping and fund management (particularly real estate). Over the year assets under management (AUM) decreased from €2.9bn to €2.0bn, driven by disposals of non-core business units. Although management expects further improvement in FY20 shipping segment revenue, it is likely to be fully offset by the absence of sold businesses. In light of current adverse markets, it guides to lower overall performance and operating income, although the extent will depend on economic and market conditions. Therefore, the key focus for 2020 is to secure liquidity, targeting stable cash levels over the year.